Delaware
|
74-1871327
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
11500
North MoPac Expressway
Austin,
Texas
|
78759
|
|
(address
of principal executive offices)
|
(zip
code)
|
Class
|
Outstanding
at October 26, 2009
|
Common
Stock - $0.01 par value
|
77,727,583
|
Page No.
|
||
ITEM
1.
|
Financial
Statements
|
September
30,
2009
|
December
31,
2008
|
|||||||
Assets
|
(unaudited)
|
|||||||
Current
assets:
|
||||||||
Cash
and cash
equivalents
|
$ | 232,700 | $ | 229,400 | ||||
Short-term
investments
|
43,663 | 6,220 | ||||||
Accounts
receivable,
net
|
90,790 | 121,548 | ||||||
Inventories,
net
|
88,726 | 107,358 | ||||||
Prepaid
expenses and other current
assets
|
40,721 | 43,062 | ||||||
Deferred
income taxes,
net
|
21,875 | 21,435 | ||||||
Total
current
assets
|
518,475 | 529,023 | ||||||
Long-term
investments
|
1,900 | 10,500 | ||||||
Property
and equipment,
net
|
150,532 | 154,477 | ||||||
Goodwill,
net
|
64,960 | 64,561 | ||||||
Intangible
assets,
net
|
44,980 | 41,915 | ||||||
Other
long-term
assets
|
35,684 | 32,115 | ||||||
Total
assets
|
$ | 816,531 | $ | 832,591 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 25,432 | $ | 30,876 | ||||
Accrued
compensation
|
16,230 | 22,012 | ||||||
Deferred
revenue
|
49,102 | 45,514 | ||||||
Accrued
expenses and other
liabilities
|
10,641 | 18,848 | ||||||
Other
taxes
payable
|
13,827 | 13,481 | ||||||
Total
current liabilities
|
115,232 | 130,731 | ||||||
Deferred
income
taxes
|
23,599 | 25,157 | ||||||
Other
long-term
liabilities
|
12,274 | 12,265 | ||||||
Total
liabilities
|
151,105 | 168,153 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders'
equity:
|
||||||||
Preferred
stock: par value $0.01; 5,000,000 shares
authorized;
none
issued and
outstanding
|
— | — | ||||||
Common
stock: par value $0.01; 180,000,000 shares
authorized;
77,689,355
and 77,193,063 shares issued and outstanding,
respectively
|
777 | 772 | ||||||
Additional
paid-in
capital
|
328,196 | 300,352 | ||||||
Retained
earnings
|
324,785 | 352,831 | ||||||
Accumulated
other comprehensive
income
|
11,668 | 10,483 | ||||||
Total
stockholders’ equity
|
665,426 | 664,438 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 816,531 | $ | 832,591 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales:
|
||||||||||||||||
Product
|
$ | 152,106 | $ | 200,871 | $ | 435,348 | $ | 578,222 | ||||||||
Software
maintenance
|
12,929 | 14,167 | 39,649 | 40,208 | ||||||||||||
Total
net
sales
|
165,035 | 215,038 | 474,997 | 618,430 | ||||||||||||
Cost
of sales:
|
||||||||||||||||
Product
|
$ | 40,476 | $ | 52,957 | $ | 119,234 | $ | 152,487 | ||||||||
Software
maintenance
|
1,423 | 1,550 | 4,034 | 4,529 | ||||||||||||
Total
cost of
sales
|
41,899 | 54,507 | 123,268 | 157,016 | ||||||||||||
Gross
profit
|
123,136 | 160,531 | 351,729 | 461,414 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Sales
and
marketing
|
$ | 65,126 | $ | 78,392 | $ | 199,089 | $ | 230,638 | ||||||||
Research
and
development
|
35,016 | 37,016 | 99,252 | 105,808 | ||||||||||||
General
and
administrative
|
12,306 | 17,177 | 42,838 | 51,122 | ||||||||||||
Total
operating
expenses
|
112,448 | 132,585 | 341,179 | 387,568 | ||||||||||||
Operating
income
|
10,688 | 27,946 | 10,550 | 73,846 | ||||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
income
|
$ | 339 | $ | 1,374 | $ | 1,335 | $ | 5,025 | ||||||||
Net
foreign exchange gain
(loss)
|
940 | (3,025 | ) | 1,301 | (1,791 | ) | ||||||||||
Other
income,
net
|
482 | 80 | 979 | 13 | ||||||||||||
Income
before income taxes
|
12,449 | 26,375 | 14,165 | 77,093 | ||||||||||||
Provision
for (benefit from) income taxes
|
2,518 | 3,216 | (554 | ) | 11,584 | |||||||||||
Net
income
|
$ | 9,931 | $ | 23,159 | $ | 14,719 | $ | 65,509 | ||||||||
Basic
earnings per share
|
$ | 0.13 | $ | 0.29 | $ | 0.19 | $ | 0.83 | ||||||||
Weighted
average shares outstanding – basic
|
77,653 | 78,834 | 77,497 | 78,701 | ||||||||||||
Diluted
earnings per share
|
$ | 0.13 | $ | 0.29 | $ | 0.19 | $ | 0.82 | ||||||||
Weighted
average shares outstanding – diluted
|
78,103 | 79,841 | 77,842 | 79,773 | ||||||||||||
Dividends
declared per
share
|
$ | 0.12 | $ | 0.11 | $ | 0.36 | $ | 0.33 |
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2009
|
2008
|
|||||||
Cash
flow from operating activities:
|
||||||||
Net
income
|
$ | 14,719 | $ | 65,509 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and
amortization
|
28,536 | 27,901 | ||||||
Stock-based
compensation
|
15,238 | 14,690 | ||||||
Provision
for (benefit from) deferred income
taxes
|
(6,802 | ) | 3,008 | |||||
Tax
expense (benefit from) stock option
plans
|
1,445 | (1,243 | ) | |||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
30,758 | 10,611 | ||||||
Inventories
|
18,632 | (16,954 | ) | |||||
Prepaid
expenses and other
assets
|
3,920 | (12,895 | ) | |||||
Accounts
payable
|
(5,444 | ) | (4,791 | ) | ||||
Deferred
revenue
|
3,588 | 5,985 | ||||||
Taxes
and other
liabilities
|
(14,245 | ) | 14,138 | |||||
Net
cash provided by operating
activities
|
90,345 | 105,959 | ||||||
Cash
flow from investing activities:
|
||||||||
Capital
expenditures
|
(12,331 | ) | (21,115 | ) | ||||
Capitalization
of internally developed
software
|
(10,611 | ) | (8,687 | ) | ||||
Additions
to other
intangibles
|
(4,009 | ) | (2,603 | ) | ||||
Acquisition,
net of cash
received
|
— | (17,310 | ) | |||||
Purchases
of short-term and long-term
investments
|
(38,876 | ) | (17,315 | ) | ||||
Sales
and maturities of short-term and long-term investments
|
10,034 | 39,080 | ||||||
Purchases
of foreign currency option
contracts
|
— | (2,784 | ) | |||||
Net
cash (used by) provided by investing
activities
|
(55,793 | ) | (30,734 | ) | ||||
Cash
flow from financing activities:
|
||||||||
Proceeds
from issuance of common
stock
|
16,351 | 26,628 | ||||||
Repurchase
of common
stock
|
(18,200 | ) | (58,215 | ) | ||||
Dividends
paid
|
(27,958 | ) | (26,055 | ) | ||||
Tax
expense (benefit from) stock option
plans
|
(1,445 | ) | 1,243 | |||||
Net
cash (used by) financing
activities
|
(31,252 | ) | (56,399 | ) | ||||
Net
change in cash and cash
equivalents
|
3,300 | 18,826 | ||||||
Cash
and cash equivalents at beginning of
period
|
229,400 | 194,839 | ||||||
Cash
and cash equivalents at end of
period
|
$ | 232,700 | $ | 213,665 |
Three
Months Ended
|
Nine Months
Ended
|
|||||||
September 30,
2008
|
September 30,
2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cost
of sales as previously
reported
|
$ | 53,537 | $ | 154,227 | ||||
Technical
support costs previously reported as sales and marketing
(a)
|
970 | 2,789 | ||||||
Cost
of sales adjusted for
reclassification
|
$ | 54,507 | $ | 157,016 | ||||
Sales
and marketing as previously
reported
|
$ | 79,362 | $ | 233,427 | ||||
Technical
support costs as previously reported as sales and marketing
(a)
|
(970 | ) | (2,789 | ) | ||||
Sales
and marketing adjusted for
reclassification
|
$ | 78,392 | $ | 230,638 |
(a)
|
Since
December 31, 2008, we have been separately reporting software maintenance
revenue and cost of software maintenance revenue in our Consolidated
Statements of Income. We added this disclosure due to the increasing
percentage of our revenue coming from software maintenance. As part of
this expanded disclosure, some technical support costs previously reported
as a component of sales and marketing expense are reported as cost of
software maintenance. This change has had no impact on our operating
income, net income or earnings per
share.
|
Amounts
as previously reported at December 31, 2008
|
Effect
of reclassification
|
Amounts
adjusted for reclassification at December 31, 2008
|
||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||
Additional
paid-in
capital
|
39,673 | 260,679 | 300,352 | |||||||||
Retained
earnings
|
613,510 | (260,679 | ) | 352,831 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Weighted
average shares outstanding-basic
|
77,653 | 78,834 | 77,497 | 78,701 | ||||||||||||
Plus:
Common share equivalents
|
||||||||||||||||
Stock
options, restricted stock
units
|
450 | 1,007 | 345 | 1,072 | ||||||||||||
Weighted
average shares outstanding-diluted
|
78,103 | 79,841 | 77,842 | 79,773 |
As
of
September
30, 2009
|
As
of
December
31, 2008
|
|||||||
(unaudited)
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash
|
$ | 70,321 | $ | 100,967 | ||||
Cash
equivalents:
|
||||||||
Debt
securities
|
— | — | ||||||
Time
deposits
|
— | 73,400 | ||||||
Money
market
accounts
|
162,379 | 55,033 | ||||||
Total
cash and cash
equivalents
|
$ | 232,700 | $ | 229,400 | ||||
Short-term
investments:
|
||||||||
Debt
securities
|
$ | 32,310 | $ | 6,220 | ||||
Time
deposits
|
2,753 | — | ||||||
Auction
rate
securities
|
8,223 | — | ||||||
Auction
rate securities put
option
|
377 | — | ||||||
Total
short-term
investments
|
43,663 | 6,220 | ||||||
Long-term
investments:
|
||||||||
Auction
rate
securities
|
— | 6,964 | ||||||
Auction
rate securities put
option
|
— | 1,636 | ||||||
Other
long-term
investments
|
1,900 | 1,900 | ||||||
Total
investments
|
$ | 45,563 | $ | 16,720 | ||||
Total
cash, cash equivalents and
investments
|
$ | 278,263 | $ | 246,120 |
As
of September 30, 2009
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Adjusted
Cost
|
Gross
Unrealized Gain
|
Gross
Unrealized Loss
|
Fair
Value
|
|||||||||||||
Debt
securities
|
$ | 32,183 | $ | 130 | $ | (3 | ) | $ | 32,310 | |||||||
Time
deposits
|
2,753 | — | — | 2,753 | ||||||||||||
Auction
rate
securities
|
8,600 | — | (377 | ) | 8,223 | |||||||||||
Auction
rate securities put
option
|
— | 377 | — | 377 | ||||||||||||
Other
long-term
investments
|
1,900 | — | — | 1,900 | ||||||||||||
Total
investments
|
$ | 45,436 | $ | 507 | $ | (380 | ) | $ | 45,563 |
As
of December 31, 2008
|
||||||||||||||||
Adjusted
Cost
|
Gross
Unrealized Gain
|
Gross
Unrealized Loss
|
Fair
Value
|
|||||||||||||
Debt
securities
|
$ | 6,199 | $ | 28 | $ | (7 | ) | $ | 6,220 | |||||||
Auction
rate
securities
|
8,600 | — | (1,636 | ) | 6,964 | |||||||||||
Auction
rate securities put
option
|
— | 1,636 | — | 1,636 | ||||||||||||
Other
long-term
investments
|
1,900 | — | — | 1,900 | ||||||||||||
Total
investments
|
$ | 16,699 | $ | 1,664 | $ | (1,643 | ) | $ | 16,720 |
Fair
Value Measurements at Reporting Date Using (unaudited)
|
||||||||||||||||
Description
|
September
30, 2009
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
||||||||||||
Assets
|
||||||||||||||||
Money
Market
Funds
|
$ | 162,379 | $ | 162,379 | $ | — | $ | — | ||||||||
Available
for sale securities:
|
||||||||||||||||
Short-term
debt
securities
|
43,663 | 35,063 | — | 8,600 | ||||||||||||
Long-term
debt
securities
|
— | — | — | — | ||||||||||||
Derivatives
|
10,735 | — | 10,735 | — | ||||||||||||
Total
Assets
|
$ | 216,777 | $ | 197,442 | $ | 10,735 | $ | 8,600 | ||||||||
Liabilities
|
||||||||||||||||
Derivatives
|
(2,070 | ) | — | (2,070 | ) | — | ||||||||||
Total
Liabilities
|
$ | (2,070 | ) | $ | — | $ | (2,070 | ) | $ | — |
Fair
Value Measurements Using Significant Unobservable Inputs
(Level
3)
|
||||
Long-term
investments available for sale
|
||||
(unaudited)
|
||||
Beginning
Balance at December 31,
2008
|
$ | 8,600 | ||
Total
gains (realized/unrealized)
|
||||
Included
in
earnings
|
377 | |||
Included
in other comprehensive
income
|
||||
Total
(losses) (realized/unrealized)
|
||||
Included
in earnings
|
(377 | ) | ||
Included
in other comprehensive income
|
— | |||
Purchases,
issuances and settlements
|
— | |||
Transfer
in and/or out of Level 3
|
— | |||
Ending
Balance at September 30,
2009
|
$ | 8,600 | ||
The
amount of total gains or (losses) for the period included in earnings (or
changes in net assets) attributable to the change in unrealized gains or
losses relating to assets still held at the reporting date
|
— | |||
$ | — |
In
thousands
|
Asset
Derivatives
|
|||||||||
September
30, 2009
|
December
31, 2008
|
|||||||||
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
|||||||
(unaudited)
|
||||||||||
Derivatives
designated as hedging
instruments
under FASB ASC 815
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Prepaid
expenses and other current assets
|
$ | 6,530 |
Prepaid
expenses and other current assets
|
$ | 5,260 | ||||
Foreign
exchange contracts – LT forwards
|
Other
long-term assets
|
1,778 |
Other
long-term assets
|
2,654 | ||||||
Foreign
exchange contracts – ST options
|
Prepaid
expenses and other current assets
|
1,331 |
Prepaid
expenses and other current assets
|
5,705 | ||||||
Foreign
exchange contracts – LT options
|
Other
long-term assets
|
585 |
Other
long-term assets
|
3,838 | ||||||
Total
derivatives designated as
hedging
instruments under FASB ASC 815
|
$ | 10,224 | $ | 17,457 | ||||||
Derivatives
not designated as
hedging
instruments under FASB ASC 815
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Prepaid
expenses and other current assets
|
$ | 511 |
Prepaid
expenses and other current assets
|
$ | 2,745 | ||||
Total
derivatives not designated as
hedging
instruments under FASB ASC 815
|
$ | 511 | $ | 2,745 | ||||||
Total
derivatives
|
$ | 10,735 | $ | 20,202 |
Liability
Derivatives
|
||||||||||
September
30, 2009
|
December
31, 2008
|
|||||||||
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
|||||||
(unaudited)
|
||||||||||
Derivatives
designated as hedging
instruments
under FASB ASC 815
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Accrued
expenses and other liabilities
|
$ | (399 | ) |
Accrued
expenses and other liabilities
|
$ | (1,803 | ) | ||
Foreign
exchange contracts – LT forwards
|
Other
long-term liabilities
|
— |
Other
long-term liabilities
|
— | ||||||
Foreign
exchange contracts – ST options
|
Accrued
expenses and other liabilities
|
— |
Accrued
expenses and other liabilities
|
— | ||||||
Foreign
exchange contracts – LT options
|
Other
long-term liabilities
|
— |
Other
long-term liabilities
|
— | ||||||
Total
derivatives designated as
hedging
instruments under FASB ASC 815
|
$ | (399 | ) | $ | (1,803 | ) | ||||
Derivatives
not designated as
hedging
instruments under FASB ASC 815
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Accrued
expenses and other liabilities
|
$ | (1,671 | ) |
Accrued
expenses and other liabilities
|
$ | (3,280 | ) | ||
Total
derivatives not designated as
hedging
instruments under FASB ASC 815
|
$ | (1,671 | ) | $ | (3,280 | ) | ||||
Total
derivatives
|
$ | (2,070 | ) | $ | (5,083 | ) |
Derivatives
in FASB ASC 815
Cash Flow Hedging Relationship
|
Amount
of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) (in
thousands)
|
Location
of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Amount
of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective
Portion) (in thousands)
|
Location
of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
|
Amount
of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
|
|||||||||
2009
|
2009
|
2009
|
||||||||||||
Foreign
exchange contracts – forwards and options
|
$ | (5,037 | ) |
Net
sales
|
$ | (401 | ) |
Net
foreign exchange gain (loss)
|
$ | 181 | ||||
Foreign
exchange contracts – forwards and options
|
1,465 |
Cost
of sales
|
(72 | ) |
Net
foreign exchange gain (loss)
|
395 | ||||||||
Foreign
exchange contracts – forwards and options
|
82 |
Operating
expenses
|
380 |
Net
foreign exchange gain (loss)
|
81 | |||||||||
Total
|
$ | (3,490 | ) | $ | (93 | ) | $ | 657 |
Derivatives
not Designated as Hedging Instruments under FASB ASC
815
|
Location
of Gain (Loss) Recognized in Income on Derivative
|
Amount
of Gain (Loss) Recognized in Income on Derivative
|
|||
2009
|
|||||
Foreign
exchange contracts – forwards
|
Net
foreign exchange gain/(loss)
|
$ | (1,607 | ) | |
Total
|
$ | (1,607 | ) |
Derivatives
in FASB ASC 815
Cash Flow Hedging Relationship
|
Amount
of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) (in
thousands)
|
Location
of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Amount
of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective
Portion) (in thousands)
|
Location
of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
|
Amount
of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
|
|||||||||
2009
|
2009
|
2009
|
||||||||||||
Foreign
exchange contracts – forwards and options
|
$ | (8,822 | ) |
Net
sales
|
$ | 2,578 |
Net
foreign exchange gain (loss)
|
$ | 1,132 | |||||
Foreign
exchange contracts – forwards and options
|
2,776 |
Cost
of sales
|
(740 | ) |
Net
foreign exchange gain (loss)
|
(44 | ) | |||||||
Foreign
exchange contracts – forwards and options
|
1,747 |
Operating
expenses
|
184 |
Net
foreign exchange gain (loss)
|
81 | |||||||||
Total
|
$ | (4,299 | ) | $ | 2,022 | $ | 1,169 |
Derivatives
not Designated as Hedging Instruments under FASB ASC
815
|
Location
of Gain (Loss) Recognized in Income on Derivative
|
Amount
of Gain (Loss) Recognized in Income on Derivative
|
|||
2009
|
|||||
Foreign
exchange contracts – forwards
|
Net
foreign exchange gain/(loss)
|
$ | (1,791 | ) | |
Total
|
$ | (1,791 | ) |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
Raw
materials
|
$ | 41,745 | $ | 48,004 | ||||
Work-in-process
|
2,422 | 4,150 | ||||||
Finished
goods
|
44,559 | 55,204 | ||||||
$ | 88,726 | $ | 107,358 |
September 30, 2009
|
December 31, 2008
|
|||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||||||||||||||
Capitalized
software development costs
|
$ | 36,838 | $ | (17,966 | ) | $ | 18,872 | $ | 25,610 | $ | (11,344 | ) | $ | 14,266 | ||||||||||
Acquired
technology
|
28,037 | (19,987 | ) | 8,050 | 27,503 | (16,804 | ) | 10,699 | ||||||||||||||||
Patents
|
18,549 | (5,145 | ) | 13,404 | 16,068 | (4,506 | ) | 11,562 | ||||||||||||||||
Leasehold
equipment and other
|
12,451 | (7,797 | ) | 4,654 | 11,401 | (6,013 | ) | 5,388 | ||||||||||||||||
$ | 95,875 | $ | (50,895 | ) | $ | 44,980 | $ | 80,582 | $ | (38,667 | ) | $ | 41,915 |
Amount
(in thousands)
|
||||
Balance
as of December 31,
2008
|
$ | 64,561 | ||
Acquisitions
|
— | |||
Divestitures
|
— | |||
Foreign
currency translation
impact
|
399 | |||
Balance
as of September 30,
2009
|
$ | 64,960 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
$ | 9,931 | $ | 23,159 | $ | 14,719 | $ | 65,509 | ||||||||
Foreign
currency translation gains (losses), net of taxes
|
2,413 | (7,240 | ) | 2,908 | (2,312 | ) | ||||||||||
Unrealized
gains (losses) on derivative instruments, net of taxes
|
(1,987 | ) | 6,614 | (1,838 | ) | 5,408 | ||||||||||
Unrealized
gains (losses) on available for sale securities, net of
taxes
|
241 | (182 | ) | 115 | (778 | ) | ||||||||||
Total
comprehensive income
|
$ | 10,598 | $ | 22,351 | $ | 15,904 | $ | 67,827 |
Stock
Options (unaudited)
|
||||||||
|
Number
of shares under
option
|
Weighted
average
Exercise price
|
||||||
Outstanding
at December 31,
2008
|
4,272,567 | $ | 25.97 | |||||
Exercised
|
(309,486 | ) | 14.09 | |||||
Canceled
|
(169,422 | ) | 26.20 | |||||
Granted
|
— | — | ||||||
Outstanding
at September 30,
2009
|
3,793,659 | $ | 26.83 |
Outstanding
and Exercisable by Price Range as of September 30, 2009
(unaudited)
|
||||||||||||||||||||||
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Range of Exercise prices
|
Number
outstanding as of
9/30/2009
|
Weighted
average remaining contractual
life
|
Weighted
average exercise
price
|
Number
exercisable as of
9/30/2009
|
Weighted
average exercise
price
|
|||||||||||||||||
$16.08 – $21.04 | 1,281,991 | 1.96 | $20.69 | 1,223,823 | $20.71 | |||||||||||||||||
$21.25 – $29.85 | 1,294,169 | 4.11 | $28.03 | 1,113,980 | $27.96 | |||||||||||||||||
$30.51 – $34.38 | 1,217,499 | 0.66 | $32.02 | 1,209,006 | $32.02 | |||||||||||||||||
$16.08 – $34.38 | 3,793,659 | 2.28 | $26.83 | 3,546,809 | $26.84 |
RSUs
(unaudited)
|
||||||||
Number
of RSUs
|
Weighted
Average Grant Price
|
|||||||
Balance
at December 31,
2008
|
2,165,228 | $ | 26.99 | |||||
Granted
|
537,083 | 20.95 | ||||||
Earned
|
(407,156 | ) | 22.04 | |||||
Canceled
|
(47,646 | ) | 27.94 | |||||
Balance
at September 30,
2009
|
2,247,509 | $ | 26.42 |
2009
|
||||
Dividend
expense yield
|
0.5% | |||
Expected
life
|
3
months
|
|||
Expected
volatility
|
47% | |||
Risk-free
interest rate
|
1.0% |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Stock-based
compensation
|
||||||||||||||||
Cost
of sales
|
$ | 335 | $ | 295 | $ | 975 | $ | 810 | ||||||||
Sales
and marketing
|
2,210 | 2,114 | 6,626 | 6,204 | ||||||||||||
Research
and development
|
1,929 | 1,867 | 5,349 | 5,160 | ||||||||||||
General
and administrative
|
728 | 800 | 2,288 | 2,351 | ||||||||||||
Provision
for income taxes
|
(409 | ) | (1,364 | ) | (5,288 | ) | (3,588 | ) | ||||||||
Total
|
$ | 4,793 | $ | 3,712 | $ | 9,950 | $ | 10,937 |
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
(unaudited)
|
||||||||
2009
|
2008
|
|||||||
Balance
at the beginning of the
period
|
$ | 952 | $ | 750 | ||||
Accruals
for warranties issued during the
period
|
1,518 | 1,219 | ||||||
Settlements
made (in cash or in kind) during the period
|
(1,551 | ) | (1,272 | ) | ||||
Balance
at the end of the
period
|
$ | 919 | $ | 697 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales:
|
||||||||||||||||
Americas:
|
||||||||||||||||
Unaffiliated customer
sales
|
$ | 75,459 | $ | 97,021 | $ | 211,991 | $ | 269,527 | ||||||||
Geographic
transfers
|
19,498 | 34,446 | 61,872 | 95,386 | ||||||||||||
94,957 | 131,467 | 273,863 | 364,913 | |||||||||||||
Europe:
|
||||||||||||||||
Unaffiliated customer
sales
|
46,683 | 66,702 | 143,026 | 197,935 | ||||||||||||
Geographic
transfers
|
44,460 | 54,985 | 139,709 | 151,755 | ||||||||||||
91,143 | 121,687 | 282,735 | 349,690 | |||||||||||||
Asia
Pacific:
|
||||||||||||||||
Unaffiliated customer
sales
|
42,893 | 51,315 | 119,980 | 150,968 | ||||||||||||
Eliminations
|
(63,958 | ) | (89,431 | ) | (201,581 | ) | (247,141 | ) | ||||||||
$ | 165,035 | $ | 215,038 | $ | 474,997 | $ | 618,430 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Operating
income:
|
||||||||||||||||
Americas
|
$ | 15,058 | $ | 21,567 | $ | 28,658 | $ | 53,654 | ||||||||
Europe
|
20,087 | 26,361 | 52,562 | 76,088 | ||||||||||||
Asia
Pacific
|
10,559 | 17,034 | 28,582 | 49,912 | ||||||||||||
Unallocated:
|
||||||||||||||||
Research
and development expenses
|
(35,016 | ) | (37,016 | ) | (99,252 | ) | (105,808 | ) | ||||||||
$ | 10,688 | $ | 27,946 | $ | 10,550 | $ | 73,846 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
income:
|